Politicians indebted to big business, not voters

The story of families struggling to pay overwhelming medical expenses, even with insurance coverage, was timely and touching. The one discordant note was the statement by Michael Sment (mediator of the U.S. Bankruptcy Court for the Central District of California) that 80 to 90 percent of bankruptcies are driven by real estate: “It’s never about medical bills.”

I am an attorney licensed to practice in California and Washington. Several years ago while in Washington, I worked as a legal aid attorney and represented many poor clients in bankruptcy cases. I know that the main reasons for filing for relief then are the same as they are now — unreimbursed medical expenses, job loss and divorce.

Obviously, real-estate problems from predatory lending, for example, backbreaking student-loan repayments and business failures add to the mix, while outrageous credit-card rates are, for many consumers, icing on the cake. Saying that bankruptcies are “never” about medical bills is just not true. The stage for a bankruptcy “choice” has long been set by our elected representatives, who have failed for decades and continue to fail to protect the average American consumer from the insatiable greed and questionable practices of banks and insurance companies.

Members of both parties have sold out their offices for contributions by these giants while their constituents drown in debts they can never repay.

As an example, major changes in the Bankruptcy Code were accomplished during the Bush years making it harder to file for bankruptcy. This was a sop to credit-card companies, accomplished with the help of elected representatives from both parties, many of whom were lawyers and who should have known the effect this would have on the average Joe and Jill, but they just didn’t care then and I question if they care now.

The rationale was that low-life consumers were burning credit-card companies by filing for relief from repaying them. It seems to me that credit-card companies have been doing pretty well for themselves, basically unregulated and enjoying huge profits year in and year out. I’m sure they’re grateful for all the congressional help they’ve received.

As your article shows, American lives are being destroyed by healthcare problems and economic stress. When people give up trying to find affordable healthcare, work things out with their creditors, locate better employment, etc., they may file for relief.

The main reason consumers give for filing bankruptcy is the least important piece of the puzzle, especially if our elected officials continue to remain indebted to big business at the expense of voters, no matter what happens in the economy.

What a travesty!

— Judith A. Mathison of Ventura is an attorney who teaches for Southern California Institute of Law.